b'How to Legally Raise Private Moneypurchase price and then pool funds from private investors to finance the down payment, capital improvements and closing costs. In some cases, the syndicator may decide to raise all of the money from private investors. The syndicators job will consist of finding a suitable property, orga-nizing a group of investors, forming a company to pool investor funds, and managing the asset on behalf of the company. For his or her efforts, the syndicator will usually receive fees and a percentage of the profits left after all expenses and loan obligations have been paid (otherwise known as distributable cash or available cash). A real estate syndicator typically offers promissory notes to investors or sells interests in a company; both fall within the definition of securities. The process of offering securities to investors is called a securities offering or private placement offering, or a real estate offering. The documents the syndicator will share with prospective investors to tell them about the in-vestment opportunity are called securities offering documents or offering materials.A syndicator is required to follow securities laws if he or she is offering or selling securities.Manypeoplewhoareraisingmoneyfromprivate investors fail to recognize: a) that they are offering orsellingsecurities;orb)thattheymustfollow securities laws to legally do so.There are many methods of using private investor funds to buy real es-tate or start a business. This book describes the common methods em-ployed by real estate investors and startup companies who pool money from investors for an identified purpose. The purpose of this book is to teach you the critical things you need to know about how to legally seek investments from private investors, and to do so in a way that can be both ethical and profitable for you and for your investors. Well explore the mysteries about how to structure your company, how to split profits with investors and acceptable management fees. The secu-rities laws and marketing principles described in this book apply equal-ly to non-real estate securities offerings, but the corporate structures for 2'